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Guggenheim Global Infrastructure Company has agreed to take a 46% stake in Infrastructure India as the trend grows for Western firms to team up with local companies on large-scale construction projects in the subcontinent.

Under the reverse takeover deal, Infrastructure India will acquire £119m of Guggenheim assets including 50% of India Hydropower Development Company and up to 99.99% of Vikram Logistic & Maritime Services.

In return, GGIC will own nearly 46% of the combined firm with executives Tom Tribone, Sonny Lulla and Robert Venurus joining the board if shareholders approve the deal at an EGM on March 2.

“The deal highlights the growing comfort of Western firms to pair up with local companies on operational assets. We’ll be seeing much more of this over the next five years as India continues to grow its energy offering” said one fund placement manager.

The region is of increasing interest to banks and private equity firms looking for inflation resistant assets. Morgan Stanley’s Global infrastructure fund is considering taking an equity stake in construction firm Isolux Corsan and 3i will raise a second dedicated $1.2bn Indian infrastructure fund later this year.

As part of the deal, all but $1.5m of the $191.5m purchase price will be paid in shares with a further £33m raised to fund new investments via a share placing. The deal values Indian Infrastructure, which has investments in a hydropower project and a toll road development, at a 58 per cent premium to Friday’s closing price of 67p.

Sonny Lulla, executive vice president of GGIC, said: “The combination of GGIC’s Indian assets with those of Infrastructure Indian will help create a platform well suited to the opportunity set in Indian infrastructure investment. We look forward to working with Infrastructure India's shareholders to intelligently grow its business in the years to come.”

GGIC is an affiliate of Guggenheim Partners, a privately held global financial services firm with more than $100bn in assets under supervision, including the management of assets in excess of $80bn from more than 22 offices in nine countries.